ITEM:		GENERAL MANAGERS REPORT
8.	UPDATE ON DEVELOPMENT OF WATER SUPPLY PROJECTS
Meeting Date:			July 20, 2015	Budgeted:	N/A
From:			David J. Stoldt,	Program/	Water Supply Projects
			General Manager	Line Item No.:
Prepared By:			David J. Stoldt	Cost Estimate:	N/A
General Counsel Review: N/A
Committee Recommendation: N/A
CEQA Compliance: N/A

DISCUSSION:

Cease and Desist Order: Under Section 1832 of the California Water Code any aggrieved party can request a modification to a State Water Resources Control Board (SWRCB) Cease and Desist Order (CDO). Agenda item 16 contains a proposed application for modification of the current CDO.

California American Water Company (Cal-Am) Desalination Facility: The Draft Environmental Impact Report was released April 30^th with a 60-day comment period. Comments were initially due July 1^st. The CPUC extended the period to July 13^th, but then on July 9^th based on several reasons outlined in Exhibit 8-A, the deadline was extended to September 30^th. This delay will result in the rescheduling of the other filing dates related to the application. It is unclear what effect it will have on Phase 2 testimony on the Pure Water Monterey groundwater replenishment project scheduled for November.

The test slant well pump test was stopped on June 5^th as a result of declining groundwater levels in a monitoring well. The California Coastal Commission in its July 3^rd letter (Exhibit 8-B) “determined that the water level decrease appears to be caused in part by the pump test.” The Coastal Commission’s permit will require an amendment to allow the pump test to restart. The earliest Cal-Am will be able to appear in front of the Coastal Commission to request an amendment is August 12^th to the 14^th in Chula Vista.

On July 10^th Cal-Am complied with a District data request which will facilitate the application for a CPUC Financing Order for the issuance by the District of Ratepayer Relief Bonds. The delay in the EIR schedule will have the effect of delaying the filing for a Financing Order to October or November.

Pure Water Monterey groundwater replenishment project: The Draft Environmental Impact Report was released April 22^nd with a 45-day comment period. Comments were due June 5^th and 27 comments were received. The project’s environmental team is in the process of reading and responding to the comments, and preparing for inclusion in the final EIR.

The large source water stakeholders group met July 2^nd. Progress was reported on all fronts including negotiations between MRWPCA and MCWRA, MRWPCA and Salinas, and MPWMD and Cal-Am. The deadline for reaching definitive agreements has been extended to September 30^th as shown in the Consent Calendar.

The State Regional Water Quality Control Board staff attended the July 2^nd meeting and expressed strong support for the Blanco Drain element of the project.

Resolutions in support of State Revolving Fund loans were included in the Consent Calendar.

The demonstration facility is expected to be on-line in mid-August and tours have already been scheduled for the American Water Works Association in August and the California Special Districts Association in September.

ASR Wells – Phase 1 and 2: Item 14 in this Agenda will pave the way for completion of the ASR Wells Phase 1 site.

At its last meeting, the District’s Public Outreach Committee decided it would be most appropriate to refer to ASR as ASR “Wells” – Phase 1 and Phase 2, rather than Water Project 1 and Water Project 2. The reason is to be more consistent with actual practice and to avoid confusion with the District’s Paralta Well development and its Reclamation Project partnership.

Local Water Projects: The 2015-16 Local Water Project Grant solicitation has been distributed with a due date of September 1^st. It is expected that the Pebble Beach Company (Del Monte Golf Course well) and/or the City of Seaside will apply.

The City of Pacific Grove released it draft supplemental environmental impact report (SEIR) the first week of July. It is expected to be certified by the City Council in August. A first reading of an Ordinance for this project appears on this Board Agenda.

Malpaso (Odello) received its notice of decision from the SWRCB for its water rights on July 3^rd. A first reading of an Ordinance for this project appears on this Board Agenda.

Airport District: In May, the Airport District’s consultant produced a draft report indicating that the three existing extraction wells have a combined potential steady extraction rate of 66.2 gallons per minute or approximately 107 acre-feet per year. Potential markets have yet to be fully explored. Additional investment to maintain production reliability has not been identified.

Fairgrounds: The District provided the Fairgrounds with a draft grant agreement earlier this year. It has not been returned. The District also provided the Fairgrounds with a proposed scope of services for an outside feasibility study and design. The Fairgrounds has not yet acted. However, the Fairgrounds earlier this year completed the retrofit of all of its toilet facilities. That retrofit may have significantly altered the financial feasibility of re-plumbing the toilet facilities with well water. Additional follow-up by District staff is planned.

Alternative Desalination Project: DeepWater Desal released its Notice of Preparation for its CEQA work and hosted a Scoping Hearing on June 16^th. District staff attended. The State Lands Commission is Lead Agency and will invoice the District for 50% of the initial deposit for the consultant hired to prepare the draft EIR.

Los Padres Dam and Reservoir: On June 5^th, District staff sent to Cal-Am a draft agreement for activities relating to a long term plan for Los Padres Dam. The Company has not responded. The scope of services includes the following:

Upstream Steelhead Passage – Existing Ladder: The existing fish ladder, trap and truck operation, and appurtenances shall be evaluated for effectiveness and design issues.

Upstream Volitional Steelhead Passage – All Life Stages: The feasibility and cost of building and maintaining facilities to allow volitional upstream passage over Los Padres Dam for all life stages of steelhead shall be evaluated

Water Availability Analyses: MPWMD shall complete a linked surface-groundwater flow model for the Carmel River Basin based on GSFLOW water availability analyses shall be conducted under 6 or more scenarios.

Analysis of Carmel River Flow and Steelhead Habitat: To study the effect on steelhead of the removal of the dam or an increase in storage, an additional analysis involving evaluation of stream habitat would be conducted using a hydraulic model and habitat suitability curves developed with the Instream Flow Incremental Method (IFIM). However, due to drought conditions, completion of the IFIM for the Carmel River is uncertain. It is anticipated that if enough steelhead are in the river in the winter of 2015-16, an IFIM could be completed by the latter part of 2016.

Analysis of Geomorphic Effects of Sediment Releases: A geomorphic analysis of the effect of two alternatives would be completed for: 1) bypassing all of the incoming bedload to Los Padres Reservoir (i.e., maintain existing reservoir volume); and 2) bypassing all of the incoming bedload to Los Padres Reservoir and periodically dredging existing reservoir sediment and adding to the bypassed sediment (i.e., steadily increase reservoir volume by increasing the bedload downstream of Los Padres Dam above the natural sediment load).

An additional task would be to identify feasible options for removing dredged material from the reservoir and either moving the material to a nearby disposal area or placing it downstream of Los Padres Dam and allowing the river to carry the material downstream

EXHIBITS

8-A CPUC Ruling Extending Briefing Schedule

8-B California Coastal Commission determination on test well permit conditions

8-C Cal-Am test well monitoring results

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